Last fall, Chicago’s mayor Rahm Emanuel reached an agreement with the Park District unions. Now, he says he needs to adjust city office worker pensions , other municipal workers along with laborers and the building trades.
The proposed pension deal , which has to be approved by the General Assembly, also incrementally raises property taxes $250 million dollars phased in over a five year period.
City workers would also need to contribute more towards their pension plans. City employees would pay an additional $300 dollars a year by 2019.
Mayor Rahm Emanuel says proposed deal that could affect about 50,000 active and retired city workers. The mayor insists he has the backing of a majority of the 30 unions affected by the proposal. And a bill could be fast-tracked before Illinois House members before the year is over.
But not all the unions are behind this effort. The Chicago Teacher’s Union says the mayor’s math is wrong and the costs to city workers will be much greater.
Chicago is facing an estimated $20 billion dollars worth of unfunded pension obligations.